New tower lease

by Matt
(Wichita Kansas)

I have been approached to lease space for a tower about 5 miles out of Wichita, Kansas and they offered $750 month with $250 month extra for any over 2 antenna's plus a 5% escalator every 5 years. Is that anything close to market?

Comments for New tower lease

I have received a lease offer of 1000/mth with 4 5 yr options with a 10% increase at the beginning of each 5 yr renewal. The company has done their due diligence and has city approval. The property has a higher elevation, sits on 4-70 interstate close to I-70 interstate. Lots of new business, upper income homes and a major hospital is 2-3 miles from the site. last traffic figures I have from 2014 show around 70,000 cars pass by each day. There is an existing cell tower immediately adjacent, some one else property, to where they want to put one on my property.

Oct 25, 2015Rating

Tower lease terms and rate, Wichita KSby: Stephen

Matt, the $750 is low but if you were the Verizon guy, and there were lots of properties to choose from, you'd be trying to get the deal as cheaply as possible. Five miles south of Wichita can be pretty rural if you are outside the residential neighborhoods. Rent depends of location, need for coverage, and availability of alternate sites in the search area.
There is no guarantee of a 2nd carrier, let alone a 3rd, so the subleasing offer doesn't really float my boat. 5% escalator every 5 years is horrible, they are really fleecing you at that rate. Needs to be 3% annually or 15% every five years.